Labour ‘considers plan to move Bank of England to Birmingham’
2 min read
A Labour government could move the Bank of England to Birmingham, under radical new plans being considered by the party.
Consultants commissioned by the Shadow Chancellor have recommended moving the central bank out of it historic central London location in order to boost regional representation in economic decisions.
The report concludes that the current set up is “unsatisfactory and leads to the regions being underweighted in policy decisions”, according to the Financial Times.
It also recommends moving “some functions” to Birmingham, locating them “next door or close to” two brand new organisations the party plans to establish if it gets into government – the National Investment Bank and Strategic Investment Board.
The review will also consider whether the Bank of England governor should be based in Birmingham.
FINANCE BILL FIGHT
Meanwhile, the party is planning to vote against the Finance Bill in the Commons today in protest over tax cuts for big banks.
The party is calling for the Chancellor to reverse cuts to the bank levy worth £4.7bn, announced in last month’s Budget, in order to finance children’s services.
John McDonnell said: “The chancellor made his decision. The bank levy, introduced shortly after the global financial crisis, is to be cut further, continuing the giveaways made by his predecessor, George Osborne, that will see billions handed back to the major banks by 2020.
“The banking surcharge, supposedly introduced to compensate the taxpayer for this loss, won’t come close to making good the difference.”
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